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Heckmann Corporation Message Board

  • twm48976 twm48976 Dec 13, 2011 2:04 PM Flag

    HEK has competition though..Poseidon

    Phoenix Suns

    “The advantage for any potential acquirer is not really built in just yet,” he said in a telephone interview. “There’s a lot of competition.”

    Still, the 68-year-old Heckmann, who is also part-owner of the National Basketball Association’s Phoenix Suns, sold the last two businesses that he ran -- K2 Inc. and U.S. Filter Corp. -- before starting his namesake company. Heckmann, which had risen 40 percent in the past year, ended at $6.30 yesterday.

    Poseidon, split off from Open Range Energy Corp. in November so it could rent out so-called frack tanks to other producers, may also attract interest from potential buyers, according to Haywood’s Ready, a Calgary-based analyst.

    The tanks are used to store fresh water before it’s pumped into the well for fracking. They then hold the tainted water after it is pumped back out and before being trucked away or recycled by another company.

    ‘Explosive Growth’

    Poseidon, which will have about 240 frack tanks by the end of the year, has the ability to build nine tanks a week and can generate about $1 million from each tank in a year when used full time, Haywood’s Ready said. That means Poseidon can recoup the expenses from building a tank, which costs about $200,000 each based on his estimate, in about two or three months.

    Analysts now project that Poseidon will more than double revenue to C$163 million ($159 million) next year, data compiled by Bloomberg show. In an acquisition, Haywood’s Ready says the company could get C$13.50 a share, or 22 percent more than its price of C$11.06 yesterday.

    “It’s been explosive growth for them,” he said in a telephone interview. “The economics on it are staggering.”

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